City committee OKs Wal-Mart for Pullman Park

In a move that could have nationwide implications for Wal-Mart's expansion in major cities, the City Council Zoning Committee signed off Thursday on a second store in Chicago.

The decision marks Wal-Mart's first such victory in six years. The giant retailer overcame powerful union opposition that kept Chicago aldermen at bay as they weighed the prospect of bringing more jobs to their wards against the possibility of losing their own to labor-backed opponents at election time.

The breakthrough followed months of behind-the-scenes wrangling among unions and Wal-Mart over how much workers will get paid, with Mayor Richard Daley publicly exhorting the two sides to agree.

The deal struck Thursday has Wal-Mart assenting to pay at least $8.75 an hour — 50 cents more than minimum wage as of July 1. Unions once wanted $11.03 an hour, but settled for less and touted the company's agreement to give raises of 40 to 60 cents an hour to Chicago workers after a year. A Wal-Mart spokesman, however, said store workers typically get that kind of bump anyway.

In the end, Wal-Mart appears on its way to getting a second store. The unions, which won't actually represent any of the workers, get to save face. And aldermen looking ahead to re-election in February get to avoid a repeat of 2007, when several of them lost after angry unions put up challengers who opposed Wal-Mart.

The full City Council will consider the plan next week to allow a Super Wal-Mart as part of the major Pullman Park development just west of the Bishop Ford Freeway on vacant land that was once the Ryerson steel mill in a part of the city that has no grocery store.

Opinions differ on whether Wal-Mart can translate the Pullman Park momentum into a successful push for dozens of Chicago stores, both big and small.

Labor leaders pointed out their cooperation with Wal-Mart extends only to the second store.

"There are 21 more stores that are going to come in," said Dennis Gannon, president of the Chicago Federation of Labor. "We are going to hold Wal-Mart accountable at every … step of the road, to make sure they are living up to their side of the agreement."

Some aldermen, however, already are looking down the road at a Chicago filled with Wal-Marts.

"I think the eyes of the nation really are on this chamber today," said Ald. Edward Burke, 14th, who noted Wal-Mart has been stymied in its bids to open stores in Los Angeles, New York and other large cities. "Up until this point, they haven't been able to get into Chicago. This is going to change their opportunities, not only in Chicago, but nationwide."

Ald. Anthony Beale, whose 9th Ward is home to the Pullman site, said he expects Wal-Mart will move quickly to increase its presence in the city.

"Pandora's box is open. I'm sure they're going to aggressively start looking at different locations to open up," Beale said.